Emerging Trends of ESG in the Construction Sector: A Promising Pathway to Sustainable and Responsible Development

The construction industry holds a substantial responsibility for its environmental impact and has been subject to increasing regulatory pressures. Environmental, Social, and Governance (ESG) considerations have gained prominence as a framework for assessing sustainability risks and crucial opportunities in business operations. However, ESG research in the construction sector is still in its early stages. This paper aims to provide a comprehensive overview of recent research trends of ESG in the construction industry. An analysis of current research trends reveals several emerging areas within the ESG framework of the construction sector. First, there is a growing emphasis on environmental factors such as reducing carbon emissions, implementing green building practices, and adopting sustainable materials and construction methods. Secondly, there is an increasing focus on the social dimension of ESG, with a focus on promoting worker welfare, ensuring fair labor practices, and promoting diversity and inclusion in the construction workforce. Thirdly, governance practices in the construction industry are being reviewed, with a focus on transparent decision-making processes, ethical behaviour, and effective stakeholder engagement. By supplementing these recent trends with drivers, challenges, and benefits, the findings in this paper can provide holistic insights of the promising ESG integration to industry practitioners, policymakers, and researchers to understand and promote sustainable and responsible ESG practices in the construction industry.